8. Group & Situational Effects and Culture

1. Group & Situational Effects on consumer behaviour

  1. Family
  2. Reference groups
  3. Opinion leaders
  4. Brand communities

A. Opinion Leaders and influence

  1. Referent power - Celebrity endorsements, social media influencers 2. Expert power - Pharmacist, lawyers, teachers
  2. Legitimate power - Judge, police
  3. Reward power - Boss, supervisor
  4. Coercive power - Coach, parent

Reference groups – groups that has significant influence on an individual’s values, attitudes, and behaviour.

  • Normative reference group - group to tell acceptable norms (family, friends)
  • Aspirational reference group - group to tell desirable norms (celebrities, athletes)

Influence of reference groups

  1. Informational influence
  2. Utilitarian influence
  3. Value-expressive influence

Two step flow of mass communication - opinion leaders (OLs) are the key to the spread of information.

  • Information flows from mass media to opinion leaders who then disseminate into larger population

B. Brand communities and brand tribes

Brand community - group of people who share a common interest in a brand and its products.

  • brandfest - annual event for brand community